Latur DCC Bank: RBI Orders Removal of Maharashtra Minister Babasaheb Patil From Board Over Tenure Limit
The Reserve Bank of India has ordered the removal of Maharashtra Cooperation Minister Babasaheb Patil and seven directors from the Latur DCC Bank board for violating the 10-year tenure limit. The action follows a Bombay High Court directive on a plea by member Satish Jadhav. While seven directors resigned earlier, Patil has decided to challenge the order.
The Reserve Bank of India (RBI) has ordered the removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors of the Latur District Central Cooperative Bank (DCCB) for exceeding the statutory 10-year tenure limit. Patil belongs to the Nationalist Congress Party (NCP) led by Deputy Chief Minister Sunetra Pawar. The central bank's regulatory order followed specific directions passed by the Aurangabad bench of the Bombay High Court in response to a petition filed by bank member Satish Sheshrao Jadhav.
RBI Assistant General Manager Kapil Goswami issued the removal order on Friday under the provisions of the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025, which enforces a strict 10-year tenure cap on directors of District Central Cooperative Banks. Girish Mahajan Viral Photo: Maharashtra Minister Says Morphed Pics Being Circulated; Files Complaint.
RBI Orders Removal of Babasaheb Patil From Latur DCC Bank Board
News Alert! RBI orders removal of Maharashtra minister Babasaheb Patil as Latur DCC Bank Director for exceeding 10-year tenure limit on post. pic.twitter.com/jfyXyautH1
— Press Trust of India (@PTI_News) September 19, 2026
Babasaheb Patil Removed From Latur DCC Bank Board: Background and Legal Dispute Over 10-Year Cap
The regulatory scrutiny originated after State Cooperation Department Deputy Secretary Sudhir Amrite wrote to the Cooperation Commissioner in Pune, seeking formal action against directors of district central cooperative banks who had completed more than 10 years in office.
Subsequently, on May 25, 2026, Satish Jadhav submitted a complaint to the Chief General Manager of the RBI, seeking the disqualification of eight directors of the Latur DCC Bank on the same tenure grounds. Jadhav told PTI on Saturday that copies of the complaint were also submitted to the Divisional Joint Registrar of Cooperative Societies (Latur Division), the Cooperation Commissioner, and the NABARD section of the RBI.
High Court Intervention and Six-Week Deadline
After the central bank did not initially act on the complaint, Jadhav approached the Bombay High Court on June 21, 2026. On August 3, the Aurangabad bench of the High Court directed the RBI to take action on Jadhav's May 25 complaint within a six-week timeline.
Following the court directive, the central bank issued notices on September 4, asking the concerned directors to submit their responses by September 10.
Resignation of Seven Directors and RBI Removal Order
Seven of the directors, Ashok Shivajirao Patil Nilangekar, Shripatrao Nivruttirao Kakade, Swayamprabha Dhananjay Patil, Vyankatrao Dhondiram Birajdar, Prithviraj Harishchandra Shirsat, Pramod Jadhav, and Nagorao Patil, tendered their resignations on September 10 to the bank's chairman and Managing Director Hanumant Jadhav. The bank's executive director accepted their resignations and forwarded them to the RBI General Manager via email.
On September 18, the RBI formally directed the Latur DCC Bank to remove from office "the director who is ineligible to hold office under Section 10A(2A)(i), read with Section 56 of the Banking Regulation Act, 1949." Minister Babasaheb Patil, who had chosen not to step down, has disputed the interpretation and indicated that he will challenge the RBI order before the High Court.
(The above story first appeared on LatestLY on Sep 19, 2026 05:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
